Bugs officials are warm to the idea of Stablecoin Yuan, led by “Fear of Lost”

The US decision to adopt cryptocurrency through legislation such as genius law does not matter locally. Washington’s step puts pressure on countries all over the world to refer to its own position on Stablecoins and Cryptocurrency.

In recent months, financial and academic officials inside China have spoken of the need to think at least in the authorization of Stablecoins, which ZHIGUO, a professor of financing at Stanford University, says he is driven by “fear of being lost.”

On Friday, the Chinese Hong Kong city-which is betting on encrypted currencies to enhance its position as a financial center-will start accepting the dollar-backed Stablecooin requests in Hong Kong, which is likely to open the door to a distinctive code supported by Renminbi as well.

While going to the United States in Crypto, Beijing is now having a difficult decision: Do you coincide with the risky US bet on a future that focuses on Stablecoin? Or does it play it safely and risk poverty Advanced financial technology?

Happy encrypted to us

Stablecoins is supposed to be, unlike their most volatile counterparts in the coded currency space, somewhat boring. These virtual assets are linked to the value of the reference asset, such as the FIAT. barely All stablecoins Connected to the US dollar, the world’s reserve currency. Users can click Stablecoins to easily transfer money between different cryptocurrencies without the need to resort to money in the real world.

Stablecoin users are confident for sufficient liquid reserves to recover the FIAT coins at any time. But unlike banks, Stablecoin does not have a lend in the last resort to refer to it. The collapse of 2022 from Terrausd, The algorithms called algorithm are spread, and they are concerns about other cryptocurrencies, including the most firm symbols.

The possibility of stablecoins raised the release of the cryptocurrency to the financial panic until the governments are wary of Stablecoins. But now US President Donald Trump, in his second term, He wants to make The United States is “the planet’s encryption capital”.

“Trump has done 180 to the United States and just said:” the liberalization of the systems, the cancellation of liberation, the cancellation of the organization, “says Professor Harvard and former Economists of the International Monetary Fund, Kenneth Roger.

The American Congress approved Genius On July 17^YCreate the first regulatory framework for a dollar stablecoins. the Representation It requires exporters to maintain reserves, as in US Treasury money or bills, to support Stablecoins at least 1: 1.

China is the encryption

The United States’s sudden position can worry about other countries. Paul Plosette, journalist and author, says, “People do not trust the currency and the central bank,” said that supported by dollars will be attractive in “the poor countries really where people do not trust the currency and the central bank.” King Dollar: The past and the future of the dominant currency in the world. But even countries with strong local currencies may face a future as “citizens prefer to deal with this type of tool.”

People’s Bank in China (PBOC) is now in a frustrating position. China has banned all cryptocurrency transactions since 2021, Quoting from The risks they can spread to the country’s financial system.

But China does not want to find itself behind the curve – or behind the United States – if Stablecoins and Blockchain technology is in fact the future of financing.

“It will be a strategic danger if the yuan -boundary payment is not effective like Stablecoins in dollars.” Yongli Improved “A proactive response from other countries, especially China”, to American legislation, according to Pekinology Newsletter.

Pan Gongsheng Governor male The increasing use of Stablecoins for border payments at the Lujiazui 2025 Forum in Shanghai on June 18.

After days, and Securities timesIt is a newspaper owned by the government media company People dailyHe wrote that those familiar with the industry “generally believe that as a tool for emerging payment, unique features and potential risks of Stablecoins cannot be ignored, and that the development of (Renminbi-Pegged) should be sooner and not later.”

the Post morning South China It was reported on July 14 that China was exploring the feasibility of allowing Stablecoins. Two local officials told the newspaper that state-owned entities, including the GuoTai Haitong, and Build Data Data Group, which were looking into a group of Renminbi-Pegged commercial symbols.

“It is not the fact that the United States is entering into encryption, in itself, it matters,” says Ivan Auiang, head of the Blockchain Technology Brands group. “This is what really started as a result of this change … Stablecoins became institutional” after obtaining legitimacy from the United States (Animoca Brands intends to apply for a license to issue Stablecoins in Hong Kong.)

Canceling the vanishing

There is a geopolitical component of the Stablecoin conversation. If the dependence of the US dollar stablecoins grows, exporters will need to keep more dollars and dollar assets to support the duration. Tether, which is emerging the largest stablecoin in the world, was already The seventh largest buyer in the world We have debts in 2024.

After getting rid of the global domination of the dollar for decades, China does not want to give the United States an opportunity to restore the Earth.

“They are very concerned about the authority practicing the United States and expanding the use of the dollar,” says Rooff.

China tried to encourage Renminbi more to trade in border, with limited success. Trade with isolated countries such as Russia and Iran can be made in Renminbi, but most countries in the world still prefer to use the US dollar. Rojov says that the popularity of the dollar in Stapcin can “deceive” Beijing’s efforts to develop its own financial networks.

Tramp war has motivated talks about “canceling the channel”, or reducing dependence on the US dollar, due to concerns about the future of the American economy and arms fears in dollars. Even Trump himself feels anxious from the competitors of the dollar, and threatens Huge tariff Against the BRICS block if you look at the creation of an alternative currency.

US Treasury Secretary Scott Pesin He said Stablecoins can help maintain the US dollar as a dominant backup currency.

Some Chinese officials agree with Bessent: Former Deputy Finance Minister Zhu Kwanjiao argued in June that “the strategic purpose behind the United States’ strengthening – liquidity is linked to US dollars – is preservation The East is read Newsletter,

Can China launch Stablecoin?

But even if Beijing is open to launch Stablecoin, it must overcome another obstacle: its closed capital account, which means that officials cannot declare in the Chinese Yuan Renminbi (CNY) -stablecoin.

“There is still a lot of concerns about capital flight issues” that make the editing of the capital account in China unlikely.

China can allow Stablecoin to Renminbi Marine (CNH). And since More than 70 % Of the Renminbi marine payments are treated in Hong Kong, Huang Yebing, PBOC, suggested to use City As a test ground for the launch of Chinese Stablecoin. Chinese technology giant JD.com According to what was reported, a similar plan was suggested in its discussions with PBOC.

Stablecoin Decree in Hong Kong, due to the entry on August 1^streetIt already defines a legal framework for benefit Sufficient liquidity For the Renminbi-PEGGD stablecoin exporters.

Despite the law It requires exporters Keeping the reserves of the reference Stablecoin, since the Hong Kong dollar itself is linked to the US dollar, the Stablecoin HKD-PEGID exporters can keep the US dollar reserves.

“Hong Kong is associated with the US dollar. Therefore, to some extent, they mainly help us,” explained by Stanford. “Perhaps this is why Beijing (can say), when you do HKD (Stablecoin), I want you to do CNH too.”

“Check in orgasm”

Currency experts are concerned about how Stablecoins is implementing a threat to the economy – whether in the United States or in China.

Blustein indicates the risk of “replacing the currency”. If Stablecoins exceeds the attractiveness of the local currency, it “connects the central bank’s ability to control the economy,” he says, because everyone participates in transactions in a tool outside the bank’s control.

Without a central bank or lender in the last resort, Stablecoins is vulnerable to operation – users rush to recover their distinctive symbols for the fate once. the The possibility of a Rojov says the Stablecoin crisis is “very parallel to the free banking era in the United States in the nineteenth century.”

“The danger of the financial crisis is high,” he says.

Blustein, for his part, is less concerned about mobilizing things – partly because it is a “small part of international payments”.

“Stablecoins cannot buy that many short -term cabinets” to compete with central banks and multinationals.

Another person expresses some doubts about Stablecoins? Eddie Yue, head of the Hong Kong Monetary Authority and the city In reality Central Banking.

At a press conference last week, Yue He said to the public To “curb the orgasm” on stablecoins, pointing to “very ideal” discussions on how to “disable the prevailing financial system.”